The plaintiffs claim the board ignored several red flags about the extent of the hacking, dating back several years, and failed to act until the scandal exploded last year.

The shareholders also allege that News Corp directors breached their fiduciary duties by acquiescing to CEO Rupert Murdoch's decision to buy a television production company controlled by his daughter Elisabeth at an inflated price.

The New York company says the plaintiffs have not met standards for bringing the lawsuit or demonstrated that the board acted in bad faith.